Dose

The Budget

111 posts in this topic

Yeah I didn't realise how crappy the scheme was. Seems like a lot of effort for 6k. I'd rather work more or get a high-paying gig.

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11 hours ago, Mr Medved said:

Yeah I didn't realise how crappy the scheme was. Seems like a lot of effort for 6k. I'd rather work more or get a high-paying gig.

In any case, that genial scheme does nothing more than add to the demand to help prop up prices.

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On 2017-5-11 at 9:20 AM, cobran20 said:

In any case, that genial scheme does nothing more than add to the demand to help prop up prices.

Happy for it to pump along for a few more years... I'd like to bank a bit more savings before the next depression hits...

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50 minutes ago, Mr Medved said:

...I'd like to bank a bit more savings before the next depression hits...

As per Armstrong's posting from today, my concern is that during the next recession (and especially if it is another GFC) the RBA/Treasurer will follow the IMF's request to tax your savings until you spend it all before it is fully taxed. It is already known that the moment the banks are shaky, a Cyprus style bail-in will be introduced.

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On 10/05/2017 at 10:24 AM, zaph said:

I hope you're not planning on taking the family? Their airfares would soon eat up any tax benefits of this new scheme.

Max contribution of 15k pa with a total max of 30k contribution. That's barely stamp duty in some states. 

So let's say I'm on under 87k income pa. My marginal tax rate is 34.5%, soon to be 35%. I chuck in 15k x 2 years. Taxed at 15%. Total benefit 6k. Peanuts. Oh but wait theres more. The income my 30k earns will only be taxed at 15% instead of my marginal rate of 35%. Lets say it performs well and I get a 10% return that's another massive tax saving of nearly a grand. 

400k gets you a decent house in the outer burbs of Brisbane. 

Meh. I'm battling for 6k on a TD of 250k so I'll take a risk free 6k. As long as it's not means tested of course. I doubt it applies to me this time either as I'm in a defined benefit scheme and am already salary sacrificing at the maximum allowed. Ms clown is maybe the only one that can take full advantage.

I seem to recall that Morrison was talking remembering the renters? I can't see where that has actually happened.

Scott Morrison says budget will remember the renters

 

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9 hours ago, staringclown said:

Meh. I'm battling for 6k on a TD of 250k so I'll take a risk free 6k. As long as it's not means tested of course. .

2

I'm not sure if it's risk-free or not. Not sure if you can allocate to various assets separate to your main super. So let's say you're relative young so you have a long time horizon and decide to have most of your super in higher risk, higher growth assets. You'd want your house deposit in lower growth, lower risk assets. It's unsure whether you will be able to do this. 

It's sort of means tested in a weird and complicated way. If you're earning no income and contribute the max you will go from paying no tax to 15% on the way in. If you're a high-income earner you go from paying 47.5% tax to 15 on the way in. There's also a 30% tax on withdrawal with a 30% tax rebate on the way out. 

The detail will be thrashed out in the senate. 

Quote

I doubt it applies to me this time either as I'm in a defined benefit scheme and am already salary sacrificing at the maximum allowed. Ms clown is maybe the only one that can take full advantage

 

I'm unsure how it applies to defined benefit schemes. I've read conflicting info on whether it will be inside or outside the concessional contributions limits. Once again the senate will decide. Govt budgets are a farce. They're nothing more than a 'we intend to this', but are held up as some economic indicator. The coalition made all sorts of predictions in their 14 budget and it took them 3 years to say - ops got it wrong by 13b!

For max benefit, Ms Clow would best to be a high-income earner when contributing and a low income earner when withdrawing - wild fluctuations in income are often caused by childbirth. I call it the withdrawal method. This scheme will be as much about family planning as tax planning. 

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Read an interesting article by Noel Whittaker today re oldies downsizing and putting the difference in super. Looks like an incentive for very very few people. Mal's pulled a good con job with this one.

Example:

Couple sell their McMansion for $900k and buy something smaller for $550k. They have $325k in super and little other assets. After costs, they're left with $300k from downsizing. They put that in their super. They now have $625k in assessable assets for Centrelink. They used to get the full pension. Now they will lose ~$20k pa in govt pension. Why would they bother?

 

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1 hour ago, zaph said:

Read an interesting article by Noel Whittaker today re oldies downsizing and putting the difference in super. Looks like an incentive for very very few people. Mal's pulled a good con job with this one.

Example:

Couple sell their McMansion for $900k and buy something smaller for $550k. They have $325k in super and little other assets. After costs, they're left with $300k from downsizing. They put that in their super. They now have $625k in assessable assets for Centrelink. They used to get the full pension. Now they will lose ~$20k pa in govt pension. Why would they bother?

 

For the good of the country of course! :rolleyes:

What you forget is that the couple would blow the money on a caravan & 4WD, play grey nomads for a couple of years such that little is left of the $300K.

Then back on the full pension again... :P

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7 hours ago, zaph said:

Read an interesting article by Noel Whittaker today re oldies downsizing and putting the difference in super. Looks like an incentive for very very few people. Mal's pulled a good con job with this one.

As is pretty much every government announcement that at first glance appears to have some substance e.g. the 457 visa scrapping bait and switch.

At this stage I don't know whether to blame cretinous politicians or the voters who refuse to have unsustainable middle and upper class welfare reduced.

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On 2017-5-22 at 5:44 PM, Turkey said:

As is pretty much every government announcement that at first glance appears to have some substance e.g. the 457 visa scrapping bait and switch.

At this stage I don't know whether to blame cretinous politicians or the voters who refuse to have unsustainable middle and upper class welfare reduced.

It's not a 457, it's a 458, totally different. Saw through that con straight away.

I'm usually very good at seeing through policy that is just smoke and mirrors but this one conned me. 

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